China's main stock index experienced the biggest daily fall in eight months dropping below 3,000 Monday, led by a slump in property shares due to tougher government measures to rein in excessive property price gains.

The benchmark Shanghai Composite Index on the Shanghai Stock Exchange ended at 2,980.30 points，down 150.01 points, or 4.79 percent. The Shenzhen Component Index plummeted 6.22 percent to 11,644.58 points.

Total turnover expanded to 275.35 billion yuan (40.33 billion U.S. dollars) from 187.24 billion yuan on the previous trading day.

Losers outnumbered gainers by 842 to 33 in Shanghai and 836 to 85 in Shenzhen.

Property shares led the losses by declining more than 8 percent.

The State Council, or the Cabinet, said over the weekend that commercial banks should halt lending to third home purchases in cities with soaring property prices, as well as to those who can't prove they had lived and paid taxes and social insurance for at least one year in the city where they want to buy.

Before the move, the central government also vowed to crack down on speculation and announced measures last week to control runaway prices, including increasing land supplies and raising down payments.

The stepped-up measures caused 25 property stocks to drop by the daily limit of 10 percent. China Vanke Co, the country's largest property developer by market value, dived 8.19 percent to 8.30 yuan, a record low in a year. Poly Real Estate Group Co. fell 9.28 percent to 16.92 yuan, also a one-year low.

Banking shares were also affected, with Bank of Ningbo Co. down 9.32 percent to 14.21 yuan and Industrial and Commercial Bank of China, the country's largest bank by market value, down 4.90 percent to 4.66 yuan.

Coal and oil shares were also weak due to prices fall in commodities, dampening the overall market.

Gansu Jingyuan Coal Industry and Electricity Power Co. declined 8.14 percent to 15.91 yuan. PetroChina Co., the country's largest oil producer, dipped 5.22 percent to 10.89 yuan.

Go to Forum >>0 Comments